Ali, who was the owner of a double storey house in Marang has sold his house to Abu, the Purchaser. Ali did not appoint any lawyer to act for him for he felt it could save him the lawyer fees. Abu appointed Z & Co to be his lawyer. It has been agreed by the parties that the total purchase price paid by Abu shall be kept by Z &Co until the completion of the registration of transfer. Z & Co. has given its undertaking to Ali on this. However, upon receiving the money from Abu, the sole proprietor of Z & Co, Mr. Z has disappeared with all the money. Apparently, the transfer to Abu could not be registered because of the negligence of Z & Co in preparing the transfer form (Form 14A). Ali & Abu are now contemplating to take action against Z & Co.

Another Lawyer, Sin Chan represented Ali in his purchase of a house from Ahmad who was his client in another land dealing. The house apparently belonged to Sazali. Sin Chan prepared the sale and purchase agreement and the transfer form for the execution of Ali and Ahmad. Upon execution of these documents, he advised Ali to pay all the purchase price to Ahmad. Abu did so as advised.

Advice them as to the issues relating to conflict of interest, stakeholder money and undertaking.